The stock rallies of several smaller artificial intelligence (AI) companies took centre stage on Thursday, 15 February 2024, after a Nvidia Corp. (NVDA) SEC filing disclosed the tech giant’s interest in them. This knock-on effect highlighted Nvidia’s ever-increasing impact on the AI sector.
Disclosed Nvidia investments boost share prices of smaller AI outfits
Nvidia outpaced the market values of both Amazon.com, Inc. (AMZN) and Alphabet Inc. (GOOG) earlier this week, making it the third-most valuable company in the US. In the last 12 months, the chipmaker’s stock has grown by 200% as the insatiable demand for microchips shows no signs of slowing.
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According to the SEC filing, Nvidia invested $3.7m in SoundHound AI, Inc. (SOUN) in 2017. This outfit’s stock surged by 67% on Thursday. When the company went public in 2022, it identified Nvidia as a core investor.
Nano-X Imaging Ltd. (NNOX) shares climbed by 49% after Nvidia disclosed a $380,000 investment in the firm. Similarly, Nvidia stakes in TuSimple Holdings Inc. (TSPH) and Recursion Pharmaceuticals, Inc. (RXRX) boosted these companies’ stock prices by 37% and 14%, respectively.
TuSimple’s 37% rally comes a month after the independent trucking company revealed plans for delisting from the Nasdaq. In its press statement, the company said: “In making its determination, the Special Committee concluded that delisting and deregistering is in the best interests of the Company and its stockholders.”
Nvidia’s quarterly earnings report will be released next week. Economists expect annual growth of more than 200%, surpassing the $20bn mark.
